US President Donald Trump has announced that branded and patented pharmaceutical imports into the United States will face a 100% tariff starting October 1, 2025, unless the companies producing them are actively building manufacturing plants within the US.
“Starting October 1st, 2025, we will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company is BUILDING their pharmaceutical manufacturing plant in America,” Trump posted on Truth Social, adding that “building” will be defined as breaking ground or under construction.
The move is the latest in Trump’s tariff-heavy economic agenda, which he says will boost domestic manufacturing and help reduce the US budget deficit.
Additional Tariffs Announced
In the same announcement, Trump imposed:
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50% duty on imports of kitchen cabinets and bathroom vanities
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30% duty on upholstered furniture
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25% duty on heavy trucks
Trump justified the measures citing “national security and other reasons”, despite not specifying a formal legal basis.
India’s Pharma Industry at Risk
India is among the largest suppliers of pharmaceutical products to the US:
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In FY24, India exported $8.7 billion (Rs 77,138 crore) worth of pharma goods to the US — nearly 31% of its total $27.9 billion pharma exports.
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In the first half of 2025 alone, exports crossed $3.7 billion (Rs 32,505 crore).
Indian firms — including Dr. Reddy’s, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma, and Gland Pharma — earn between 30-50% of their revenue from the US market.
Although the tariffs appear to focus on branded and patented drugs (dominated by global pharma giants), uncertainty remains over the impact on complex generics and speciality medicines exported by Indian manufacturers.
Potential Fallout
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For US Consumers: Could lead to price hikes, drug shortages, and higher insurance costs, as American consumers rely heavily on low-cost generics from India.
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For Indian Companies: Thin profit margins may be squeezed, forcing firms to pass on higher costs to US buyers.
Background
Trump has already imposed 50% tariffs on Indian imports earlier this year, including a 25% “penalty” on Indian crude purchases from Russia, signaling increasing trade pressure on New Delhi
